In the last few decades, the United States have been the king of economics and technology making it the economic power and technological power of the world (no wonder major tech companies have been born in the United States). From Silicon valley, Texas, and New York, tech companies have been on the birthed there giving the US a lot of tech power but it is no doubt that in the last few months the economy of the world have been going down due to the current pandemic but we know that a lot of companies like Amazon, Zoom, Facebook and many others have been making a lot of profit. While this American companies have been making a whole lot of profit, the same thing happened to Tic Tok (China social media platform).
Owned by Byte Dance, the company has been seeing a rise before the pandemic in downloads of the app and the company made over $17 billion dollars in revenue in 2019 with a profit of $3 billion (what a good profit for a lip miming and short dancing video app). The app is being downloaded in virtually all countries except in India (little wonder they have such success) and recently, the United States just gave the company till September 15, 2020 to make proper deals or get banned from being used in the United States.
Why will the US ban Tic Tok
Everyone would have heard Donald Trump say it on a regular basis that the virus is a Chinese virus and was released to affect the economy of the United States. It is believed that the Virus is a Bioweapon targeted at the US to crumble its economy while the Chinese government make money over the Virus. Most nations see Chinese tech companies and apps a tool for the Chinese government to steal information and that has been the major setback for so many Chinese companies and Tic Tok is not left out. During the lockdown, Tic Tok saw its highest numbers of download with over 350 million people downloading the application in a quarter giving the app a download of over 2 billion downloads so far.
Tic Tok now becomes a threat to the US government as it is said that the company is making money of the United States which is part of the Chinese plan to cripple the US economy, also it is said that the company is helping the communist government gather information (although, the company has disputed this claims severally).
The Biding Game
The US is a very large market and Byte Dance will not want to lose such a market but as we all know that Donald Trump administration always does whatever threat it dishes out and this time it is going to do as it says if a deal isn’t made with a US company before September 15, 2020 and one company has showed interest and that’s Microsoft.
Microsoft wants to buy a part of Tic Tok that has to do with the United States, Canada, Australia, and New Zealand. I do not know if this bid game will ever work but I am sure that Tic Tok would not want to lose a market like the America market. Tic Tok currently does not look like they are really interested in selling the US part of the company to Microsoft, but they only have limited time to get things done.
It's a great power play, I see that.
I also think the US is losing ground in the global market, it gives them power that the dollar is still the main world currency, but it's not the same anymore.
I've never used tik tok, nor downloaded it, nor do I think I will, but it certainly benefited a lot from the pandemic this year.
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Appreciate your contribution buddy.
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@tipu curate
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Upvoted 👌 (Mana: 12/20) Passive income with @tipU :)
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@tipu curate
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Does he have to sell if or if the question is what would happen if he sold to a European company? They could not be penalized there for not being from a Chinese company, the outlook is interesting, we will see what happens
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It's just a political game but we need to watch and see what happens, appreciate the contribution.
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@ben-edom we have seen tic tok is banned in many countries because of it data stolen issue. Let see were it goes many news are coming regarding the tic tok let see in future it's to early to say anything.
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Appreciate the contribution buddy.
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This has all the makings of an underhanded, sneaky corporate takeover. Or maybe it's just all for show so that US and China users can interact.
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Appreciate the contribution.
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in any case,is a move smart. They find opportunity to improve the business.
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I really believe so, appreciate the contribution.
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Tik Tok has grown very remarkably during the lockdown. In return they've carved market in every country across the globe with huge market shares in countries like US. The recent potential ban by Trump administration is a pure global power play. America has threatened to send Tik Tok packing unless they sell American share to a native company. Normally this would seem grossly out of place, however, considering that China banned significantly major companies from operating in their country — especially American companies and brands. It is only OK that US wants to have a payback through the trade war. Recently though US is having a very unreasonably strict stance on foreign brands operating on their shores.
A similar thing was done to Telegram and their proposed TON blockchain which was later cancelled because the US fought them with legal charges for offering their tokens.
However, the US move against TikTok is setting a dangerous precedent that may eventually kill the internet as a truly global network (or what is left of it). Before the US-TikTok saga, only autocratic countries like Iran, China or Russia were known for bullying tech companies into selling parts of their businesses to investors with close ties to their governments. It’s not surprising, for example, that Uber had to sell both their Russian and Chinese branches to local players.
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